Pilgrim’s Pride acquires Moy Park for $1.3 billion
Pilgrim’s Pride Corp. has acquired Moy Park, a leading poultry and prepared foods supplier with operations in the United Kingdom and Europe, from JBS S.A., in a transaction valuing the equity interest of Moy Park at approximately $1.0 billion (or approximately £790 million based on a 1.31 exchange rate as of Sept. 8, 2017), implying an enterprise value of approximately $1.3 billion (or approximately £1.0 billion).
Pilgrim’s Pride Corp. has acquired Moy Park, a leading poultry and prepared foods supplier with operations in the United Kingdom and Europe, from JBS S.A., in a transaction valuing the equity interest of Moy Park at approximately $1.0 billion (or approximately £790 million based on a 1.31 exchange rate as of Sept. 8, 2017), implying an enterprise value of approximately $1.3 billion (or approximately £1.0 billion).
Since its founding in Northern Ireland in 1943, Moy Park has established a strong reputation for providing fresh, high-quality and locally farmed poultry products, as well as a track record of delivering top quartile profit growth. As a top 10 UK food company and one of Europe’s leading poultry producers, Moy Park brings to Pilgrim’s a fully integrated, market-leading platform with more than 800 farmers across the UK. Moy Park processes more than 5.7 million birds per week and has 13 processing plants located in the UK, Ireland, France and the Netherlands supplying major food retailers and restaurant chains in the UK and Europe. Pilgrim’s anticipates incremental annual revenue of approximately $2 billion as a result of the transaction.
Pilgrim’s expects to achieve approximately $50 million in annualized synergies over the next two years, primarily from the optimization of sourcing and production, and cost savings in purchasing, production, and logistics, and other expenses.
“We are pleased to announce the acquisition of Moy Park, which will position Pilgrim's to become a global player, with an improved and more stable margin profile on the chicken business and an expanded portfolio of prepared foods,” said Bill Lovette, Pilgrim's Chief Executive Officer. “Following our successful acquisitions of GNP and the assets in Mexico, Moy Park represents a logical next step in the evolution of our geographical and brands footprint. The acquisition gives us access to the attractive UK and European markets, which advances our strategy of diversifying our portfolio to be more global while reducing volatility across our businesses.”